Thousands of manufacturing jobs are at risk if the transition from gas boilers to heat pumps doesn’t accelerate, according to research by the Institute for Public Policy Research (IPPR). The IPPR highlighted that slow progress in this transition could threaten around 6,000 jobs in the manufacturing sector. Despite Scotland witnessing record installations of heat pumps, the UK still lags behind other European countries in adopting this eco-friendly alternative to gas boilers.
The IPPR report also noted that Scotland has the potential to become a hub for heat pump manufacturing if the right industrial strategy is implemented. Heat pumps are considered more energy-efficient than gas boilers, leading to lower energy bills and reduced reliance on volatile gas markets. Revolutionizing home heating is crucial for Scotland to achieve its net-zero emissions target.
Currently, the UK is disproportionately installing more gas boilers than heat pumps, with the IPPR urging the government to install at least five million heat pumps by the end of the next Parliament and 19 million by 2050. The think tank recommended measures such as more generous subsidy schemes, low-cost financing, and support for boiler manufacturers to transition into producing heat pumps.
Simone Gasperin from the IPPR emphasized the need for a coherent industrial strategy to align demand for heat pumps with targeted business support measures. With the ban on gas boiler installations in new-build homes in Scotland and the broader phase-out scheduled to begin from 2028, the transition to heat pumps is essential for achieving climate goals and ensuring economic growth.
The IPPR highlighted the shared skills and equipment between boiler and heat pump manufacturing, suggesting that boiler manufacturers could easily diversify into heat pump production with low capital investment. The report stressed the importance of seizing the economic potential of heat pumps, particularly in regions like Scotland, north-east England, and the Midlands.
To address the slow progress in transitioning to heat pumps, the IPPR called for a new strategy to turbocharge this transition. This includes considerations for lower energy tariffs for heat pump users, funding to support manufacturers in shifting to heat pump production, and the need for targeted business support measures. If managed effectively, the transition to heat pumps could not only protect jobs but also drive economic growth and help achieve climate targets.